Generally speaking, as with any credit card, it also makes sense to consider a travel credit card if your finances are in good standing and it makes sense for your travel plans. Experts universally agree that everyone should have some type of rewards credit card, assuming they have an appropriate credit score and can pay the card off in full every month. The decision to get a travel credit card hinges on various factors, including how much you spend, the card’s rewards structure, and whether the benefits outweigh any associated fees, Torres says.

What to look for in a travel credit card

According to Lapin, you should look for a travel credit card that offers a solid rewards rate on your spending.

Sign up bonus: Look for a juicy sign-up bonus and perks that suit your travel style, she says. “Key features might include things like no foreign transaction fees, comprehensive travel insurance, and freebies like airport lounge access or credits for Global Entry and TSA PreCheck. But be cautious of cards with unreasonable minimum spending requirements to earn sign-up bonuses, Torres adds. “Make sure you can comfortably meet the spending threshold without overspending or accruing unnecessary debt,” she says.

Rewards program: In that same vein, though, consider a rewards program with perks you will actually use—if you regularly fly in and out of an airport that doesn’t have a lounge, then a premium card with lounge access probably shouldn’t be a priority. “Other red flags include restrictive redemption options that tie you to one airline or hotel chain, unless you’re totally okay with that limitation,” Lapin says.

However, you’ll also want to avoid cards with limited redemption options or complex rewards structures that could make it challenging to maximize your rewards, and steer clear of cards with high foreign transaction fees, especially if you frequently travel internationally, Torres says. “These fees can quickly diminish the value of your rewards when using the card abroad,” she says.

Annual fees: While many travel cards will come with an annual fee, they also typically come with a sign-up bonus worth far more than that fee, making it easily pay for itself. It’s also key to zero in on your own travel habits, so if you’re flying a specific airline multiple times a year, it can make sense to get a branded card for that airline.

Airline perks: Some airline credit cards also offer free checked bags as a benefit for holding the card, which can be a huge advantage to those who typically check bags, as that can cost around $40 per bag, per leg of your trip.

Ultimately, “balance annual fees with benefits, prioritize cards with no foreign transaction fees for international travel, and explore additional perks like concierge services,” Torres says.

Is a high annual fee a red flag?

At first glance, a high annual fee can send people running from signing up for a travel credit card. Experts often see them as green flags vs. red, however, assuming you get the value out of them in points and perks. Even a no-annual-fee travel card that has no foreign transaction fees can be worthwhile for a single trip abroad, considering that foreign transaction fees can otherwise add 2-3% on the price of every international purchase.

“In certain cases, a high annual fee on a travel credit card can be justified by the valuable perks and benefits it offers,” Torres says. “For frequent travelers who prioritize convenience and luxury, these cards often provide access to airport lounges, elite status with airlines and hotels, and comprehensive travel insurance coverage, enhancing the overall travel experience. “

Additionally, cards with high annual fees may offer generous rewards rates, lucrative sign-up bonuses, and flexible redemption options, allowing cardholders to accumulate points or miles quickly and redeem them for premium travel rewards, Torres adds.

Cards with annual fees also tend to have other big benefits, like travel insurance, as well as some niche benefits on certain cards, such as statement credits at Saks Fifth Avenue, Uber or Equinox.

“Just remember to align the card with your actual travel habits and financial goals and calculate whether you’ll use enough perks to offset any fees,” Lapin says. “Choosing the right travel credit card can really help make your travels more enjoyable and a bit more economical.”